If you are a business owner your life is undoubtedly packed with highs and lows and there are probably lots of things you have learned and are continuing to learn on your journey. If you are running a small business or considering setting up a small business, CHW Accountants gives some top tips to help ensure your success.
Make sure that you separate your personal and business finances. Running a small business will undoubtedly bring about changes to your everyday life. If you were previously an employee, your income and other funds would have been held in a personal account, whereas being self-employed or a limited company owner will bring your business based finances into the mix.
Having a different bank account for business transactions is essential not only for organisation but also for avoiding stress and complications when it comes to tax deadlines.
If you don’t maintain separate personal and business bank accounts all aspects of book keeping can become confusing, whereas having all your business transactions in one account can make life very simple. Invoicing, tax returns and bookkeeping will all become a bit of a nightmare if you have to sift through all your personal transactions to identify your business transactions.
Be aware of deadlines – be it Companies House or HMRC, and stick to them. An impending tax deadline can be stressful, to say the least. HMRC paperwork which have been filled out incorrectly or missed the deadline altogether will result in late fees and fines, neither of which are great news for a small business or sole trader with a tight budget. Plus, the longer it takes you to send your tax return beyond the deadline, the more penalties and interest which will be due as a result of the delight of daily charges.
An accountant for self-employed and small businesses might come in handy. You can be assured that they will not miss important deadlines and that your tax return will arrive at the HMRC as a well organised, accurate depiction of the accounts of your business.
Embrace accounting software – there are many cloud based accounting software solutions in this digital age. Accounting software provides the ideal digital tool to keep your incomings, outgoings and taxes organised and by using accounting software it’s an ideal way to give you more time to focus on other aspects of your business which could potentially increase your profits.
4 July 2019
With a major shake-up in the treatment of VAT in respect of building work is imminent – our Senior VAT Manager, Carolyn Van Hecke, highlights the implications for those in the construction industry and why it has never been so important to apply the correct VAT treatment.